KUALA LUMPUR (Oct 21): Sunway Healthcare Holdings Bhd (KL:SUNMED) and Putrajaya Holdings Sdn Bhd have formalised a joint venture to develop a 325-bed private hospital in Putrajaya, with construction slated to begin in the fourth quarter of 2027.
Putrajaya Holdings is the master developer of Putrajaya and is a subsidiary of KLCC (Holdings) Sdn Bhd, which in turn is wholly owned by Petroliam Nasional Bhd (PETRONAS).
The proposed Sunway Medical Centre Putrajaya, a multi-specialty tertiary hospital, will be built on a 2.5-acre freehold site near the Putrajaya Sentral transport hub in Precinct 7,, with completion targeted for 2031, according to a press statement.
Sunway Healthcare said the hospital will offer a range of specialist medical services, including a dedicated burns unit, catering to patients in Putrajaya and southern Klang Valley as well as international visitors.
The agreement was signed between Sunway Healthcare's wholly-owned subsidiary Sunway Healthcare Ventures Sdn Bhd (SHV) and Putrajaya Holdings' wholly-owned unit Tapak Senja Sdn Bhd (TSSB). The agreement follows the heads of agreement signed in April 2025.
SHV and TTSB establish a 60:40 joint venture company, tentatively named SunPutra Ventures Sdn Bhd.
According to a separate bourse filing, the joint venture company will acquire the project land for RM40 million from Putrajaya Development Sdn Bhd, another wholly-owned subsidiary of Putrajaya Holdings.
The land purchase is subject to several conditions, including obtaining government approvals and changing the land's designated use from mixed development to commercial.
The joint venture will target a debt-to-equity ratio of 60:40, with funding to be sourced from shareholder contributions, advances or loans, and financial institutions.
Upon completion, the hospital will be leased to a Sunway Healthcare operating subsidiary for an initial term of 15 years, with annual rental starting at 5.5% of the project's gross development costs.
Under the partnership, Sunway Healthcare will oversee the hospital's clinical and operational planning, obtain operating licences and manage the completed facility, while Putrajaya Holdings will provide support on property development, construction and regulatory matters.
“This marks an important milestone for Sunway Healthcare Group and our first joint venture hospital project since listing,” said Sunway Healthcare Group president Datuk Lau Beng Long.
He added that the partnership would allow the group to expand into Putrajaya by combining its hospital operating experience with Putrajaya Holdings' property development expertise.
Sunway Healthcare said it currently operates five hospitals with nearly 2,000 beds.
Shares of Sunway Healthcare ended at RM2.09 ahead of the announcement on Wednesday, giving the group a market value of RM24 billion.